Rendering strangeness

I'm working on what should be a really simple render but it's giving me fits.

Image 1 shows the render screen and what I hope to get as a render.
Image 2 is the actual results of the render.

I've basically taken the Dragon Slayer scene from Genesis Starter Essentials and tweaked the models a bit. Then, since I'm using this as a learning experience I've deleted the original lighting and added some basic lighting as suggested by Zigraphix in This Thread.

So I have a distant light and an UberEnvironment with the following settings:

UberEnvironment 2
Intensity: 30%
Intensity Scale: 100%
Environment Mode: Ambient (No Raytracing) [have also tried Occlusion w/soft shadows and got the same result)
Color: 215,247,255
All of the other settings are set to defaults